With the UK having enjoyed an extended weekend yesterday, the pound was very much in the same position as we left it at the end of last week. What the markets will want to see this week is some settling down after the recent China debacle, which we saw begin to happen last Monday/Tuesday. What may help with the UK this week is PMI data out for GDP – expected to come in at the same level as previous at 51.9. Service sector PMI is released on Thursday which will then offer some insight into how the UK is doing economically.
Out of the Eurozone yesterday we saw an as‐expected CPI number of 0.2% come in (although well below the 2% target so desired) – this Thursday we might just see a turnaround when the ECB meet to talk about new ways to boost inflation. With the recent drop in oil prices and uncertainty surrounding the global markets, this may be something of a slightly uphill battle. We’ll see after today, however, when we see a number of important data releases including Spanish MPI and German and Eurozone unemployment levels.
In the States, the dollar was on the up towards the ends of the week as it clawed back losses from earlier on. A surprise lift in GDP also helped which sent punters into a spin with thoughts of a rate rise occurring before the year is out. Out the gate this morning, USD was a little down following European positivity. We will see manufacturing and ISM data out this week which should have tongues wagging once more about the prospect of the all‐wanted rate rise.
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